A Study Of Financial Excesses

Financial service plays an important role in alleviating the information asy mmetry between capital supply and demand as well as optimizing the efficienc y of capital allocation.With the rapid development of the real economy and the improvement of the division of labor,the financial industry is constantly deve loping and improving(Levine,2005;Beck et al.,2007).Especially marked by t he non-monetary development of bank credit(Friedman & Kuttner,1992),the scale of financial services represented by financial innovative products and fina ncial derivatives is constantly expanding.The financial sector is caught in the vortex of self-circulation and self-proliferation out of the real sector.The return rate of financial assets,the profit rate of the financial sector and the income level of the financial industry are far higher than that of the real sector.Real enterprises have also allocated a large number of financial assets through merg ers and acquisitions,investment and other means,and even gradually separated from the main business of the real economy and directly entered the financial industry.In the economy,a series of financial excesses have emerged,such as over-securitization of assets,over-allocation of financial assets by enterprises,and over-financialization of economy.Therefore,this paper conducted an in-dept h study on the problem of financial over-regulation in accordance with the res earch paradigm of normative economics,from the research background and pro blem proposal,literature review and analysis,theoretical model and mechanism analysis,to the econometric model and empirical analysis,and finally obtaine d the relevant conclusions.This paper is divided into three parts:The first part analyzes the theoretical origin and internal logical relation o f the research problem through literature review.Financial overreach is measure d by exceeding financial boundaries.Financial boundaries are a new concept t hat has not been long put forward by the theoretical circle.The starting point and landing point of finance should be to serve the real economy.Therefore,th e relationship between financial development and economic growth inside and outside the financial boundary is analyzed.Sometimes,financial over-developme nt is not a holistic over-development,but an over-development with structural bias.This part further reviews the literature on financial over-development fro m the perspective of financial structure,laying a foundation for the macro de monstration of the core part of this paper.From the micro perspective,financial over-regulation is mainly manifested in the financial over-regulation of some behavioral subjects.In particular,the over-regulation of financial participation o f micro enterprises is regarded as economic financialization in a narrow sense by the theoretical circle.This part finally sorts out the financial over-regulation from the perspective of micro subjects,laying a foundation for the micro de monstration of the core part of this paper.The third part includes the fourth chapter and the fifth chapter,which is t he micro argumentation of the core part of this paper.The micro argumentation is specific to the financial development in China.The fourth chapter firstly in troduces the empirical facts of the financial overdevelopment in China.The fin ancial development in China does not match the demand of the real sector,an d there is the phenomenon of insufficient financial development and financial overdevelopment.Insufficient local government funds,excessive debt and excessi ve government intervention in finance exist at the same time;the effective fina ncing needs of small and medium-sized private enterprises cannot be met;the excessive allocation of financial assets by non-financial enterprises exists at the same time;the remaining funds of residents lack quality investment channels;and the excessive debt of residents due to real estate exists at the same time.The fifth chapter empirically analyzes the most important micro-mechanism of financial over-regulation in China.Through 78188 sets of quarterly panel data from Shanghai and shenzhen stock exchanges in the past ten years,this chapte r analyzes the important micro-mechanism of financial over-regulation,namely,the allocation of financial assets by China's non-financial enterprises.The allocat ion of financial assets by China's non-financial enterprises will crowd out the investment in the main business of the entity,reduce the investment in enterpri se innovation,and thus have a negative impact on enterprise value.Further,by distinguishing the region and the nature of enterprises,the paper examines the influence of non-financial enterprises' allocation of financial assets on enterprise value in detail.Configuration of financial assets in the eastern region has the greatest effect in the enterprise value lower,the eastern region economy more dynamic than the central and western regions,it easier for small and mediumsized enterprises from the growth of the business performance of ascension for enterprises and enterprise value has increased,and the enterprise the financial excesses of behavior will seriously affect the normal development and product ion,and thus the enterprise value.Since state-owned enterprises are less constrai ned by financing,non-state-owned enterprises allocate more financial assets tha n state-owned enterprises in terms of volume and proportion,and non-state-ow ned enterprises' financial excesses have a greater impact on enterprise value.An d the crowding out effect on physical assets.Enterprise due to ease the financi ng constraints and the motivation of financial investment gain configuration of financial assets under the influence of the substitution effect and income effec t of double effect is negative,enterprise configuration magnifies the financing constraints the behavior of financial asset to the negative impact of the enterpr ise,the effect on performance is more obvious in non-state enterprises,enterpri se configuration of financial assets on the real investment has significant crow ding out effect,the nonlinear influence to the return on assets.The fourth part is the conclusion and enlightenment of the whole paper,which mainly summarizes the main conclusions of theoretical and empirical an alysis.On this basis,it puts forward the enlightenment for the future develop ment of China's finance,and looks forward to the further research and plannin g in the future.